How to be a good manager during the downturn

Economic and organisational crises can lead to dramatic changes at work. Many
activities cease, some organisations freeze then cut budgets on things they
consider less essential.

Managing a team through troubled waters is not that different from leading them during the good times, it just takes more effort, skill and resilience
Photo: GETTY IMAGES

By Adrian Furnham

12:01AM BST 10 Sep 2009

Favourite targets are recruitment and training, advertising and marketing, and if they have it – research and development. Making an error in this area has cost many organisations dearly.

Communication of all sorts is changed during such periods. Some senior managers hide or go silent, the public relations machine either goes into overdrive or is itself cut. The company may become the focus of unwelcome media interest. There are soon announcements of general "belt tightening". Pension schemes are closed, budgets slashed, staff are not replaced.

People at all levels of the organisation begin to become worried, or even frightened. Many are concerned that they will be made redundant and that the organisation will have a "last in first out" policy. Staff are concerned about wage freezes occurring as the cost of living rises. Those working on an hourly basis see a reduction in their shifts.

The problem is that organisations take their eye off the ball, which leads in turn to a vicious cycle. The process goes like this – people are anxious, this can lead to illness and poor decision making at a time when need health and a sense of reality is needed most. This can result in poor productivity and customer service, which lead to yet more reduced profits and subsequently more anxiety.

It's not that hard to manage in good times. Managers earn their salary when times are not so good. Managing people is about five things. First, recruiting talented, productive, motivated people. Having achieved that, a manager needs to select the best and reject the less able, motivated or dedicated. Third, the essential of management is first to engage employees' head and heart so that they are maximally happy and productive. Fourth, staff need to be developed so that individuals can reach their full potential. Finally managers need to know how, when and why to let go people so they leave with dignity and positive feelings about the organisation.

People stay productive and loyal because of many things – their personality, values and life situation, their available opportunities, but most frequently because of the way they are managed. It is all the more important that things are well managed. We are all people of the head and of the heart and most of us enjoy all aspects of our work.

Managers have to build morale in their teams. They need to give them support and focus. Is managing in turbulent times essentially different from the same job in good times? Not really but it takes more effort, skill and resilience.